Eurozone Sentix Investor Confidence dropped to -8.3 in October, down from -8.0, better than expectation of -10.5. That nonetheless broke the streak of five months of increases. Current Situation index rose from -33.0 to -32.0, highest since March. Expectations index, however, dropped from 20.8 to -18.8, lowest since May.

Sentix said: “The parallels between the current recovery movement and the post-crisis year 2009 will be preserved. Even then, we noticed a continuous improvement, which surprised investors and had a positive effect on the stock markets. The fundamental facts were then delivered in 2010 as “proof”. Many economists still have doubts about a sustainable recovery of the economy. Fears of corona and renewed negative consequences for the real economy are too strong. However, the “first mover” among the leading indicators underlines that the chances of a positive economic surprise are quite real.”

Full release here.

Eurozone PMI Services was finalized at 48.0 in September, down from August’s 50.5. PMI Composite was finalized at 50.4, down from August’s 51.9. Looking at some member states, Germany PMI Composite hit 2-month high at 54.7 (revised up from 53.7). Italy was at 50.4. But France dropped to 4-month-low at 48.5, Ireland to 3-month low at 46.9, Spain to 3-month low at 44.3.

Chris Williamson, Chief Business Economist at IHS Markit said: “With the eurozone economy having almost stalled in September, the chances of a renewed downturn in the fourth quarter have clearly risen. Spain has been especially hard-hit as rising Covid- 19 case numbers led to further disruptions to daily life… renewed service sector downturns were also recorded in France and Ireland, while a nearstalling was recorded in Germany… Much will depend on whether second waves of virus infections can be controlled, and whether social distancing restrictions can therefore be loosened to allow service sector activity to pick up again.”

Full release here.